Investor Duo Acquires Two Tennessee LIHTC Apartment Assets

Western Wealth Capital (WWC) acquired two Tennessee apartment communities; the River City North Apartment Homes in Chattanooga, Tennessee, and Meadow Creek Apartment Homes in Goodlettsville, Tennessee, just north of Nashville.

WWC and its investment partner, FSO Capital Partners (FSO), closed on the 192-unit portfolio for a purchase price of $20.7 million. The transaction was brokered by Taylor Froland of CBRE. WWC is partnering with FSO Capital Partners for its expertise in Low-Income Housing Tax Credit (LIHTC) investments.

The 108-unit River City North, located in Chattanooga, was built in 2007. Built in 2003 and located at 919 S. Dickerson Pike in Goodlettsville, Meadow Creek offers 84 units.

River City North is financed with an $8.47 million loan at a 6.17% fixed rate with five years of interest-only payments, while WWC assumed Meadow Creek’s existing $7.79 million mortgage at a 4.60% blended rate. Financing was arranged by Brian Mumaw and Brian Liu of Northmarq.

Both communities currently operate under Section 42 LIHTC Land Use Restriction Agreements (LURAs), which hold rents below market levels.